Henglin Home Furnishings Co., Ltd. (603661) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Henglin Home Furnishings Co., Ltd.

Why is Henglin Home Furnishings Co., Ltd. ?

With ROE of 5.74%, it has a very attractive valuation with a 1.17 Price to Book Value

Over the past year, while the stock has generated a return of 11.37%, its profits have fallen by -36.8%
At the current price, the company has a high dividend yield of 2.3

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Henglin Home Furnishings Co., Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Henglin Home Furnishings Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Henglin Home Furnishings Co., Ltd.

-0.53%

-1.08

26.89%

China Shanghai Composite

15.17%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

22.88%

EBIT Growth (5y)

1.38%

EBIT to Interest (avg)

6.87

Debt to EBITDA (avg)

2.22

Net Debt to Equity (avg)

0.52

Sales to Capital Employed (avg)

1.39

Tax Ratio

23.45%

Dividend Payout Ratio

37.50%

Pledged Shares

Institutional Holding

ROCE (avg)

8.86%

ROE (avg)

10.72%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.17

EV to EBIT

17.84

EV to EBITDA

6.76

EV to Capital Employed

1.12

EV to Sales

0.51

PEG Ratio

Dividend Yield

2.27%

ROCE (Latest)

6.27%

ROE (Latest)

5.74%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

PRE-TAX PROFIT(Q)

At CNY 118.46 MM has Grown at 165.28%

NET PROFIT(Q)

At CNY 97.38 MM has Grown at 109.31%

RAW MATERIAL COST(Y)

Fallen by -34.2% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 5.84 times

-6What is not working for the Company

INTEREST(Q)

At CNY 35.27 MM has Grown at 12.91%

INTEREST COVERAGE RATIO(Q)

Lowest at 394.48

OPERATING PROFIT(Q)

Lowest at CNY 139.14 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.43 %

Here's what is working for Henglin Home Furnishings Co., Ltd.

Pre-Tax Profit

At CNY 118.46 MM has Grown at 165.28%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 97.38 MM has Grown at 109.31%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Debtors Turnover Ratio

Highest at 5.84 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -34.2% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Henglin Home Furnishings Co., Ltd.

Interest

At CNY 35.27 MM has Grown at 12.91%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 394.48

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 139.14 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 4.43 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales